Correlation Between Delek Logistics and Par Pacific
Can any of the company-specific risk be diversified away by investing in both Delek Logistics and Par Pacific at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Delek Logistics and Par Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delek Logistics Partners and Par Pacific Holdings, you can compare the effects of market volatilities on Delek Logistics and Par Pacific and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Delek Logistics with a short position of Par Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delek Logistics and Par Pacific.
Diversification Opportunities for Delek Logistics and Par Pacific
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Delek and Par is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Delek Logistics Partners and Par Pacific Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Par Pacific Holdings and Delek Logistics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Delek Logistics Partners are associated (or correlated) with Par Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Par Pacific Holdings has no effect on the direction of Delek Logistics i.e., Delek Logistics and Par Pacific go up and down completely randomly.
Pair Corralation between Delek Logistics and Par Pacific
Considering the 90-day investment horizon Delek Logistics is expected to generate 8.3 times less return on investment than Par Pacific. But when comparing it to its historical volatility, Delek Logistics Partners is 2.69 times less risky than Par Pacific. It trades about 0.07 of its potential returns per unit of risk. Par Pacific Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,239 in Par Pacific Holdings on June 10, 2025 and sell it today you would earn a total of 1,113 from holding Par Pacific Holdings or generate 49.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delek Logistics Partners vs. Par Pacific Holdings
Performance |
| Timeline |
| Delek Logistics Partners |
| Par Pacific Holdings |
Delek Logistics and Par Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delek Logistics and Par Pacific
The main advantage of trading using opposite Delek Logistics and Par Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delek Logistics position performs unexpectedly, Par Pacific can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Par Pacific will offset losses from the drop in Par Pacific's long position.| Delek Logistics vs. CVR Energy | Delek Logistics vs. PBF Energy | Delek Logistics vs. HF Sinclair Corp | Delek Logistics vs. Par Pacific Holdings |
| Par Pacific vs. Delek Logistics Partners | Par Pacific vs. CVR Energy | Par Pacific vs. PBF Energy | Par Pacific vs. HF Sinclair Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |